The Insurance industry in India began in 1818 with the establishment of the Oriental Life Insurance Company in Calcutta, mainly serving Europeans. The Bombay Mutual Life Assurance Society (1870) was the first Indian insurer to cover Indian lives. The sector grew gradually, and the Indian Life Assurance Companies Act (1912) became the first law regulating life insurance.
After independence, the government nationalized life insurance in 1956, forming the Life Insurance Corporation of India (LIC), and later nationalized general insurance in 1972, creating the General Insurance Corporation (GIC) and its four subsidiaries.
Economic liberalization in the 1990s led to reforms based on the Malhotra Committee (1993) recommendations. The Insurance Regulatory and Development Authority of India (IRDAI) was established in 1999, opening the sector to private and foreign players from 2000 onward.
In recent years, the industry has grown rapidly with digital innovation, government-backed schemes, and increased FDI limits (up to 74%), making India one of the fastest-growing insurance markets in the world.
1. Origins of Insurance in India (Pre-Independence Era)
Early Beginnings (1818–1947)
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- 1818: The first life insurance company in India — Oriental Life Insurance Company — was established in Calcutta (now Kolkata).
- However, it mainly served Europeans and excluded Indians.
- 1870: The Bombay Mutual Life Assurance Society became the first Indian life insurance company, providing coverage to Indian lives.
- Later, several Indian and foreign insurers entered the market: Hindustan Insurance Society later
- Life Insurance Corporation of India LIC)
- Bharat Insurance Company (1896)
- National Insurance Company (1906)
- United India Insurance Company (1907)
Regulation Attempts:
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- 1912: The Indian Life Assurance Companies Act was the first statute to regulate life insurance business in India.
- 1928: The Indian Insurance Companies Act was passed to enable the government to collect statistical information about both life and non-life insurance businesses.
2. Present Scenario (2025)
The Indian insurance industry is among the fastest-growing in the world, driven by economic growth, rising income levels, and digital adoption.
Key regulators and players: Regulator: IRDAI (Hyderabad HQ)
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- Major Life Insurers: LIC, HDFC Life, SBI Life, ICICI Prudential, Max Life
- Major General Insurers: New India Assurance, ICICI Lombard, Bajaj Allianz, HDFC ERGO
- Major Health Insurer: Star Health & Allied Insurance Co. ltd, Care Health.